NPD Reports on Top and Bottom Markets for Auto Aftermarket Sales - aftermarketNews

NPD Reports on Top and Bottom Markets for Auto Aftermarket Sales

Milwaukee tops list in growth; Phoenix anchors list in decline.

HOUSTON — Strong sales of brakes, wipers, driveline and suspension components helped to push Milwaukee to the top of the list of cities seeing aftermarket sales growth last year, according to new research.

Market research firm, The NPD Group, recently released the 2008 year-end results from its Automotive Aftermarket Industry Monitor, which tracks store level purchase data from more than 18,000 auto parts stores in the U.S. According to the Automotive Aftermarket Industry Monitor 2008 year-end results, among the top 50 designated market areas (DMAs), Milwaukee, Minneapolis, Chicago, Boston, and Houston are the top five cities showing the largest growth in dollars, and Phoenix, Tampa, Miami, Baltimore, and Orlando experienced the greatest declining growth.

Top and Bottom Markets in Aftermarket Sales 2008 versus 2007
 
Rank    Designated Market Area    Growth       
1    Milwaukee    +9.4%       
2    Minneapolis    +7.8%       
3    Chicago    +6.6%       
4    Boston    +5.8%       
5    Houston    +5.7%    
 
Rank    Designated Market Area    Growth       
46    Orlando    -3.8%       
47    Baltimore    -4.2%       
48    Miami    -5.1%       
49    Tampa    -5.7%       
50    Phoenix    -6.2%    

According to David Portalatin, director of industry analysis for NPD’s automotive aftermarket unit, which conducts automotive industry research, there are a variety of factors that contribute to a designated market area’s ranking on the top and bottom lists.

“Number of stores, economic conditions, weather, population, consumer preferences and any other number of variables can positively or adversely affect sales,” said Portalatin. “External factors, like the economy and population mix, often combine with business decisions to make for a strong or weak year in a market.”

Portalatin says that the takeaway is that the aftermarket isn’t a homogenous marketplace; the dynamics differ from market to market, and even within markets.

“Retailers and manufacturers that can collaborate to tailor assortments to the local market environment are at an advantage,” said Portalatin. “These locally-driven business decisions that reflect consumer preferences can provide contrast to competitors with a cookie-cutter approach.”

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